Loan Deals: News

We have been saying this for quite some time now, almost a year. But its still good when we read articles that agree with us =). The Seattle times by way of the New York Times has an article called “Swindlers swarm to foreclosures” which talks about Loan Modification scams.

Borrowers seeking loan modification are often frustrated that they cannot reach the right people at their lender or that the lender insists on a repayment plan they cannot keep, said Ira Rheingold, executive director of the National Association of Consumer Advocates.

“When you’re desperate, that’s when the crooks come out,” Rheingold said.

“You’ve tried everything, and a guy calls you up on the phone or there’s an ad on TV, and you have no other options, what do you do? You go to those guys,” he said, adding:

“People probably know in their heart of hearts that they may be getting ripped off, just like most people understood on their mortgages that they were getting in too deep, but bankers said yes, so it must be OK. It’s the same thing. The real problem is that we continue to fail to have systems in place that help people,” Rheingold said.

Rosenau, the California prosecutor, said that even when she told people that they had been swindled, “they don’t believe it, because they want it not to be true.

To read the entire article click here

Loan Modification, Scams loan modificatio, Scam, Scams

The sub prime mortgage industry has done a lot to contribute to the current economy, from shady un-licensed loan officers who would lie and forge documents, to brokers who were trying to get rich quick and cutting corners. Now lets welcome the Loan Modification companies.

According to MSNBC, NBC, CNN, LA TIMES, and a countless number of other reputable sources, foreclosures were up by as much as 75% in 2007 and it continues to be a problem in late 2008.

News reports are flooded with foreclosures, and pending economic rescission. This has given all of the old sub prime loan officers and brokers a new way to rip consumers off.

MSNBC: FBI: Beware of Loan Modification Scams , Feds probe foreclosure scams and Foreclosure Scam Ring Busted are just a few of the many articles in todays papers regarding this.

Loan Modification is nothing new. Banks have been doing it for some time now, but with foreclosures being the reality that it is these days, lots of people are trying to make money from those facing a legitimate hardship.

What these companies are doing is collecting advanced payment for a service that may or may not be completed. A payment which is non refundable according to the companies (which is illegal), unless of course you have the time and the energy to create a big enough headache to the broker.

SelfLoanMods.com is offering services for thoes looking to complete their own loan modification to resolve their home problems on their own, legally, without spending every last penny in their bank account. They offer a package which includes sample letters, loan forms, a step by step booklet, phone numbers, and a step by step guide designed to walk you through the entire process.

Chris from Selfloanmods.com recently in an interview pointed out that while the other companies charge for general loan modification services, they provide all this for free on their website www.selfloanmods.com. Things like phone numbers to your lenders loss mitigation department, and HUD resources.

In this day and age, its very easy to be fooled by scams that promise to help save your home. Its always better to take a few minutes of your own time and do the work yourself. Especially since most of the companies that promise to help you were the ones that got you into this problem in the first place.

Note: we have added the selfloanmods.com hardship letter section to the external links on this website.

Mortgage foreclosure, Loan Modification, Mortgage, MSNBC, Scams